Converge Expands Global Reverse Supply Chain Services

Major consumer electronics companies are finding hidden value in the "reverse" side of their supply networks. Converge is expanding its just-in-time supply chain services to help OEMs and retailers streamline their service inventories manage product returns more efficiently.

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This continues to be an area of tremendous opportunity

Peabody, MA (PRWEB) October 27, 2009

Converge announces a substantial expansion of its Reverse Supply Chain Services group with the build-out of its global processing center and the hiring of additional supply chain professionals in all phases of the business. The increased capabilities will help Converge meet growing demand by major tech-product brands to control costs and boost the efficiency of their service and repair operations.

The physical backbone of the expansion is the completion of a new secure and highly specialized microprocessor and a memory laboratory that will act as a hub for state-of-the-art testing, evaluation, storage and shipment of customer materials from around the globe.

Converge works with many of the computer industry's largest technology brands in sourcing and managing the highest-quality, most cost-effective electronic components to be intelligently reintroduced into their supply chain. Reverse supply chain services address the handling of unsold and returned products, a critical but less-discussed part of the technology marketplace. The Aberdeen Group estimates that high-tech companies alone spend nearly 10 percent of revenue just to manage their reverse logistics function.

"This continues to be an area of tremendous opportunity," says John Borrelli, director of Converge's Reverse Supply Chain Services group. "Our recent expansion demonstrates the growing value our customers see in outsourcing the complex tasks of managing the returned products stream and ensuring that they have just-in-time access to service spares, along with an efficient process for dispositioning faulty or out-of-warranty components on their behalf."

With its global electronics distribution network and substantial investment in value-added service offerings, Converge is quickly becoming the market leader in vendor-managed inventory (VMI), a comprehensive service that enables a third party such as Converge to fully manage the service inventory life cycle, from forecasting to parts sourcing to disposition services.

"Reverse logistics and strategic return management are increasingly recognized as affecting a company's profitability, for which a successful implementation of VMI plays a key role," says Professor Lei Lei, chair, Department of SCM and Marketing Sciences, Rutgers Business School, and director, Rutgers Center for Supply Chain Management. "VMI is an important business solution with great potential for reducing costs and time to market."
In addition to VMI, Converge provides a full range of essential reverse supply chain services, including:

  •     Testing and screening
  •     Warranty evaluation
  •     Returns processing
  •     Material kitting
  •     Market intelligence reporting
  •     Remarketing

Converge is a recognized quality leader in all its business areas. The company is committed to eliminating substandard and counterfeit parts from the global supply chain.

"Our dedication to quality is second to none," says Borrelli. "It's not always the first thing people think of when they think of reverse logistics, but the same adherence to performance and accountability is required in this market segment as it is in the procurement of new parts going into production builds. Customer loyalty is at stake, and there is probably even less margin for error when the customer has already purchased the product and is experiencing a problem of some kind."

About Converge:
Converge is a global supply chain partner for technology-driven companies. The organization's three business divisions are dedicated to just-in-time distribution of electronic components, comprehensive reverse supply chain solutions and secure IT asset disposition. Founded in 1980, Converge is headquartered in Peabody, Mass., and has offices in Columbus, Ohio; Irvine, Calif.; Singapore; and Amsterdam, along with support centers throughout Europe, Asia and the Americas. For more information, visit http://www.converge.com.

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